Investments
Active investors and board members in the European Search Fund and startup community.
Supporting the next generation of CEO-entrepreneurs.
The Search Fund model, reinventing SME succession.
Key Facts
681
funds studied
35.1%
median IRR
4.5×
average ROI
94
new funds launched in 2023
Source: Stanford GSB 2024 study
The Search Fund (SF) is an entrepreneurial investment model born at Stanford in the 1980s. It was designed to allow talented entrepreneurs without initial capital to acquire a profitable company with the support of experienced investors.
Searchers are typically 30–40 years old, graduates of top business or engineering schools, with experience in consulting, finance or operations. They distinguish themselves through leadership, the ability to inspire trust in a seller, and the capacity to lead an SME.
The model relies on two successive fundraising rounds: a first one (~400k€) to finance the search phase, and a second one to finance the acquisition of the target, typically a profitable B2B SME with 5–30m€ revenue and 1–5m€ EBITDA.
Today, the Search Fund model is mature in the United States and Spain. In France, it is developing rapidly, and Chatard Conseil is proud to support this new generation of entrepreneurs.
How a Search Fund works.
SEARCH FUNDRAISING
~400k€
Financing the search: searcher compensation, sourcing, due diligence tools. Investors back the searcher's profile, knowing ~20% of searches don't result in an acquisition.
TARGET SEARCH
Up to 24 months
Full-time search for an SF-compatible target. Investors actively support: network, strategic advice, target analysis. ~80% of searchers ultimately acquire a target.
ACQUISITION & VALUE CREATION
5–7 years
The searcher becomes CEO. Initial investors choose: 50% step-up exit, conversion into equity, or conversion + reinvestment. Some join the board.
SEARCH FUNDRAISING
~400k€
Financing the search: searcher compensation, sourcing, due diligence tools. Investors back the searcher's profile, knowing ~20% of searches don't result in an acquisition.
TARGET SEARCH
Up to 24 months
Full-time search for an SF-compatible target. Investors actively support: network, strategic advice, target analysis. ~80% of searchers ultimately acquire a target.
ACQUISITION & VALUE CREATION
5–7 years
The searcher becomes CEO. Initial investors choose: 50% step-up exit, conversion into equity, or conversion + reinvestment. Some join the board.
Our active engagements in the Search Fund and startup community.
Investor
Sharp Tools Group 🇫🇷
Rafaël Dufour — Acquired September 2023 — also Board Member
Plus: WeGrow, Joynit, Piana (startups)
Board Member
Sharp Tools Group 🇫🇷
Resources.
PDF · French · 4 pages
The Search Fund Model — Acquiring and Developing an SME
A detailed note on the Search Fund model: target characteristics, value creation levers, the three phases, searcher compensation, and Chatard Conseil's portfolio.
Download the note (PDF) →Academic & Institutional Partners
What our clients say.
Rafaël Dufour
CEO, Sharp Tools Group
Pierre-Arthur brings the right balance between governance and operational leadership, strengthening trust with shareholders.
Ibrahim Abdel Rahim
Managing Partner, Moonbase Capital
His clarity, listening skills, and strong emotional intelligence make every discussion more effective and productive.